Green SMME - Green Outcomes Fund

Green SMME

Background

The world urgently needs to move towards models where economic growth is decoupled from natural resource use and climate mitigation pathways. In South Africa, this means investment in businesses that can generate verifiable green outcomes, whilst creating jobs, including in energy, water, waste, infrastructure and land management.

Through a partnership officially signed on 31 January 2020 between National Treasury’s Jobs Fund and GreenCape, the Green Outcomes Fund (GOF) provides outcomes-based matched (concessional) funding to local investment funds (our Catalytic Finance Partners) to support investments into local SMMEs that make a demonstrable contribution to South Africa’s green economy, as well as job and enterprise creation in priority impact areas. This is also made possible by catalytic support from the FirstRand Foundation.

How it works

The Green Outcomes Fund, in partnership with The Jobs Fund, will incentivise the Catalytic Finance Partners (CFPs) that it has partnered with to invest in green businesses, as well as track verifiable green metrics. The green outcomes have been developed with small and growing business, funds, and are in line with international impact investing standards.

Apply for funding from the GOF Catalytic Finance Partners

If you are an early-stage, investment-ready business working in clean energy, waste, water, sustainable agriculture, or developing green products, get in touch with our Catalytic Finance Partners to apply directly.

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CI Ventures logo (1)

For more information on Edge Growth Venture’s investment mandate, application details, process and contact details, click the link below

For more information on  Business Partners’ investment mandate, application details, application process and contact details, click the link below

For more information on Conservation International Venture’s investment mandate, application details, application process and contact details, click the link below

For more information on Mergence’s investment mandate, application details, application process and contact details, click the link below
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For more information on Edge Growth Venture’s investment mandate, application details, process and contact details, click the link below
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For more information on  Business Partners Limited’s investment mandate, application details, application process and contact details, click the link below
CI Ventures logo (1)
For more information on Conservation International Venture’s investment mandate, application details, application process and contact details click the link, below

* Request a Funding Application Form via email, by submitting a description about your business (200 words max)
For more information on Mergence’s investment mandate, application details, application process and contact details, click the link below

FAQs

Green SMMEs must submit an application for funding directly with the Catalytic Finance Partners to GOF. Application forms/e-mail portals can be accessed from GOF’s website. A green SMME must review the investment mandates (click the "Application Details" button) and follow the application processes of each of the CFPs. Once assessed, a green SMME must apply for funding with the CFPs that meet their investment needs. Green SMMEs will be diverted to the CFP application forms/e-mail portals from GOF’s website.
Registered green SMMEs are required to submit applications for funding directly with the GOF Catalytic Finance Partners. GOF does not enter into partnerships with registered green SMMEs. CFPs manage and develop their green SMME investment portfolios independently of GOF.
SMMEs that wish to make an application for funding by the Catalytic Finance Partners to GOF must:
  • Be a registered, investment-ready small, medium or micro-sized business as per the definition of an SMME contained within the Revised Schedule 1 of the National Definition of Small Enterprise in South Africa in the Government Gazette, 15 March 2019;
  • Be working in clean energy, waste, water, sustainable agriculture, and circular economy;
  • Develop cleantech products that can be used by others to limit or prevent harm to the natural environment (relative to them using conventional alternatives), and;
  • Generate either one or more of the suite of 13 green metrics developed by GOF
GOF is currently funded by National Treasury’s Jobs Fund with catalytic grant support from FirstRand Foundation’s RMB Fund to support South African-registered and operated green SMMEs within South Africa.
A registered green SMME must apply for funding directly with the GOF CFPs. A green SMME must review the investment mandates of the CFPs and apply directly with the CFP that meets their investment requirements. Each CFP has specified their individual application processes on GOFs website. Applicants can also expect to hear on the outcome of the application with a CFP as specified under their Application Processing and Timeline details.
GOF currently has four Catalytic Finance Partners. The current CFPs to GOF include Business Partners Ltd, Conservation International Ventures, Edge Growth Ventures and Mergence Investment Managers.
Registered green SMMEs must review the investment mandates of the GOF CFPs (click the "Application Details" button) and make an informed decision on which CFP to apply for funding. The decision lies with the green SMME to apply with the CFPs that meet their investment needs.
Registered green SMMEs can make up to four individual applications with the CFPs. A green SMME must review the CFP investment mandates (click the "Application Details" button) and decide on how many applications they wish to make. Only one application can be made per registered SMME with the CFPs.
The GOF CFPs have specified their application processes and timelines within supporting documents found on GOFs website. Each CFP will respond to applications as per their individually specified processes and timelines
The GOF CFPs have specified their application processes and timelines within supporting documents (click the "Application Details" button) found on GOFs website. Each CFP will respond to applications as per their individually specified processes and timelines found within these documents.
The GOF CFPs offer debt, equity or mezzanine financing to green SMMEs. Registered green SMMEs must review the investment mandates of the CFPs (click the "Application Details" button) to understand what type of financing deals are on offer by each of the CFPs.
Registered green SMMEs must submit their funding requirements within the CFP application forms. The ticket sizes of the CFP deals are contained within the GOF Pitch Deck/"Application Details" button.
There are no deadlines for green SMMEs to submit their funding applications to the GOF CFPs.
SMMEs that registered on the GOF Green Database prior to 27 May 2020 must enquire directly with the Catalytic Finance Partners on their SMME funding application progress and status. SMME’s can enquire with each of the CFPs directly via:
  • Business Partners Limited: enquiries@businesspartners.co.za
  • Conservation International Ventures: civentures@conservation.org
  • Edge Growth Ventures: stennant@edgegrowth.com; shrivar@edgegrowth.com
  • Mergence Investment Managers: GOF@mergence.co.za
The GOF CFPs assess SMME applications on a case by case basis. Applications are assessed through the CFP due diligence processes and deal/investment committees that make a decision on successfully shortlisted applicants. SMMEs can query the outcome of the applications with the CFPs directly.
There are various business support and funding opportunities available to businesses operating in the green economy. For general business support services, visit the Green Business Support Services Directory. For funding opportunities, visit GreenCape’s Green Finance Database, or the Green Finance webpage for access to more information